BILL NUMBER: SB 572	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Alarcon

                        FEBRUARY 23, 1999

   An act to add Article 9 (commencing with Section 69660) to Chapter
2 of Part 42 of the Education Code, relating to postsecondary
education.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 572, as introduced, Alarcon.  Assumption of Loans for Personal
Computers Program.
   Existing law provides various forms of student financial aid.
   This bill would enact the Assumption of Loans for Personal
Computers Program, to be administered by the Student Aid Commission,
for the purpose of providing low-income students an opportunity to
purchase their own personal or laptop computers.  The bill would
authorize any low-income student, as determined by the commission,
enrolled in an institution of postsecondary education to use federal
loan funds, to the extent permitted by federal law, to purchase a
personal or laptop computer and become eligible to receive a
conditional loan assumption warrant, to be redeemed upon obtaining an
associate degree from a 2-year educational institution or a
baccalaureate degree from a 4-year educational institution.
   The bill would require the commission to redeem an applicant's
warrant and commence loan assumption payments upon verification that
the applicant has received an associate degree from a 2-year
educational institution or a baccalaureate degree from a 4-year
educational institution and has used the federal loan funds to
purchase a personal or laptop computer.  The bill would require the
commission to distribute student applications to participate in the
loan assumption program to postsecondary institutions that are
eligible to participate in federal financial aid programs.
   The bill would require each participating institution to sign an
institutional agreement with the commission, certifying its intent to
carry out the loan assumption program according to all applicable
published rules, regulations, and guidelines, and to make special
efforts to notify students regarding the availability of the program.

   The bill would require the commission to adopt regulations to
implement the program.
   The bill would express the intent of the Legislature that funding
necessary for the administration of the loan assumption program be
included within the annual budget of the commission in an amount
necessary to meet the loan obligations incurred by the commission.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Article 9 (commencing with Section 69660) is added to
Chapter 2 of Part 42 of the Education Code, to read:

      Article 9.  Assumption of Loans for Personal Computers Program

   69660.  The Assumption of Loans for Personal Computers Program is
hereby established for the purpose of providing low-income students
an opportunity to purchase their own personal or laptop computers.
   69661.  Any low-income student, as determined by the commission,
enrolled in an institution of postsecondary education may use federal
loan funds, to the extent permitted by federal law, to purchase a
personal or laptop computer, and may be eligible to receive a
conditional loan assumption warrant, to be redeemed upon obtaining an
associate degree from a two-year educational institution or a
baccalaureate degree from a four-year educational institution.
   69662.  The commission shall redeem an applicant's warrant and
commence loan assumption payments upon verification that the
applicant has received an associate degree from a two-year
educational institution or a baccalaureate degree from a four-year
educational institution and has used the federal loan funds to
purchase a personal or laptop computer.
   69663.  The commission shall not redeem the warrant of any
applicant who fails to obtain an associate degree from a two-year
educational institution or a baccalaureate degree from a four-year
educational institution or fails to provide verification of purchase
of a personal or laptop computer pursuant to this article.
   69664.  A person participating in the program pursuant to this
article may not receive more than one warrant.
   69665.  (a) The commission shall distribute student applications
to participate in the loan assumption program to postsecondary
institutions eligible to participate in federal financial aid
programs.  Each eligible institution shall receive at least one
application.
   (b) Each participating institution shall sign an institutional
agreement with the commission, certifying its intent to carry out the
loan assumption program according to all applicable published rules,
regulations, and guidelines, and to make special efforts to notify
students regarding the availability of the program.
   69666.  The commission shall administer this article and shall
adopt regulations to implement this article.
   69667.  It is the intent of the Legislature that funding necessary
for the administration of the loan assumption program be included
within the annual budget of the commission in an amount necessary to
meet the loan obligations incurred by the commission.